Financial institutions have established various processes and associations related to the exchange of documents evidencing monetary transactions. Such documents are generally encoded with magnetic ink so that information from the documents can be read by machine. Such documents have thus become known as magnetic ink character recognition (MICR) documents. Check processing and sorting systems have also been developed in which a check or similar MICR document has its image captured and stored electronically. Such an image can be archived so that it is indexed or joined with its accompanying data from a MICR read. In addition, up until now, MICR documents have also been captured photographically for storage in microfilm format. This feature is being removed as electronic image processing and retrieval replaces the use of microfilm.
The typical high-speed processing of documents having MICR data, for example, checks, includes reading and storing a MICR line, endorsing the document with applicable information, imaging the item so that the image can be stored in an archive facility, and sorting items for processing. Items for which the MICR reads properly, and for which no errors are detected in the data, sort to pockets for routine processing. Any items with a failed MICR read or an exception are typically sorted to a reject pocket and are handled through an exception process. The exception process typically includes attempting to read the MICR with an alternate, slower type of reader to achieve a better read rate, and if that fails, manually reviewing the paper document and keying in the appropriate data.
FIG. 1 is a flow chart which illustrates the current process for processing MICR documents at many financial institutions. In FIG. 1, various steps in the process are represented by process blocks. Process blocks can also represent stopping points or paths for different types of items. At block 102, items with MICR data are loaded into a high-speed processor. The MICR data on the item is recognized and captured by a read head. The data is transferred to a file for storage with indicators that signify which fields have apparently read correctly, and which ones have failed to read. Logic failures are also detected. A logic failure occurs when data has apparently been captured successfully, but makes no sense, so it must be assumed that the data as captured is erroneous. At block 102 of FIG. 1, items also typically pass through an endorsement feature, which typically puts a date, location of scan, and other data related to the financial institution performing the processing. The item optionally can move through a microfilm unit to have a photographic image captured. Next, the item moves under and over image scanners. An image of the item (front and back) is created and stored.
At block 104, based on the read of the document, instructions are executed regarding the disposition of the item. All items with read failures or logic issues are passed to a reject pocket at block 106. A correction process then takes place at block 108. Where an item reads good, with good data, at block 104, the item goes through high speed pocketing at block 110. In a typical check processing environment, based on the read of the MICR data, items are sorted into pockets as “on-us” items, as shown at block 112, or “transit” items, as shown at block 114. An on-us item is an item that is drawn on the financial institution doing the processing. On-us items will typically be forwarded to other locations within the financial institutions own franchise. Transit items are checks drawn on other financial institutions, and are pocketed for delivery to those institutions. In some financial institutions, items can also be sorted to “truncation pockets” (not shown) for items to be stored for a retention period and then discarded in accordance with new practices allowing an image rather than physical items be used as long-term documentation of a transaction.
The data correction process, 108, also results in items eventually being sorted into corrected, on-us items 116, and corrected, transit items, 118. Items from the high-speed process are then merged, eventually, with items from the correction or “reject repair” process at block 120. Thus, both the reject items and the good items, are typically eventually sorted to their destinations, shown consolidated at blocks 122 and 124.
It should be noted that the process shown in FIG. 1 may include both a “prime pass” a subsequent pass, also called a “subpass” or a “rehandle,” if on us or especially transit items need to ultimately pocket into more physical pockets than are available on the sorting equipment. For example, if items need to pocket into, say, 50 transit item pockets for 50 different destination banks, and a sorter only has 30 pockets available for transit items, a subpass or rehandle is needed. In such a case, for example, some items might first be pocketed into a pocket that covers multiple destinations such as all the banks in a certain state or region. Then, the sorting process is repeated on these items to finally separate them into individual pockets destined for each bank. Errors can occur and the correction process can be invoked on either the prime pass or the subpass.
In a typical financial institution, large numbers of MICR items must go through the correction process, since any error in the read of any field causes an item to sort to a reject pocket. In many cases, the correction process includes the use of check mender equipment to place correction strips on the bottom of each document so new, readable MICR can be placed on each document. The resulting delay considerably reduces the processing time for each batch of MICR items processed by a financial institution.